Devon Shows Profit During Second Quarter

Devon Energy said it recorded a profit in the second quarter on higher natural gas and oil prices and record production driven by acquisitions. Devon which became the largest U.S. Independent by acquiring Ocean Energy in April posted net income of $356 million, or $1.62 a share, compared with a net loss of $104 million, or 68 cents, a year earlier. One-time items increased Devon's earnings by about 6 cents per share. Excluding those gains, its profit was $1.56 a share. Devon recorded big write-downs and losses from discontinued assets in the year-earlier period.

Combined oil and gas production increased 13 percent in the second quarter to 56 million barrels. The Ocean Energy takeover more than offset the impact of $1.4 billion in property sales last year.

Average daily gas production rose 8.9 percent from a year earlier, to 2.37 billion cubic feet. Second-quarter revenue increased 67 percent to $1.5 billion, driven by a 64 percent climb in realized gas prices and a 13 percent advance in crude oil prices. Realized natural gas liquids prices rose 31 percent.

The company stands by its third-quarter target for oil and gas production of 61 million to 63 million barrels, putting it on track to produce between 224 million and 229 million barrels this year.